Governor lays out boom times budget

Gov. Jerry Brown holds a chart as he discusses his proposed 2016-17 budget.

Gov. Jerry Brown holds a chart as he discusses his proposed 2016-17...

Gov. Jerry Brown is drawing up his biggest-ever state budget that sends money to schools, social safety net programs and a rainy-day savings pot. But he’s also tossing out a deserved warning: The good times will end some day and doom the state if lawmakers go on a spending binge.

It’s a familiar message from the state’s top leader who’s patented a role of doling out modest increases across the board while fending off demands for larger sums amid an economic surge. Brown acknowledged that state finances are “in good shape,’’ but dismissed new spending ideas. “Too many goods, too quickly, become bad,’’ he scolded.

California's budget

Brown’s budget is still huge. The general fund amount is $122.6 billion, up by 6 percent over this year. Other special funds and spending outside the Legislature’s direct control bring the expected total to $170.7 billion.

The rocket fuel behind these sums is the state’s volatile capital gains tax, paid by the wealthy in good times. It’s a feast or famine levy that rides with economic swings and right now it’s coining money for Sacramento.

Though other budget experts believe California’s budget picture is relatively stable, Brown zeroed in on past gyrating budget numbers and warned against adopting permanent programs that include hiring and long-term expenses. That warning is barely disguised code for his dislike of Democratic plans to raise the minimum wage to $15 per hour, more low-income social services and other proposals that restore deep spending cuts over his last two terms as governor.

Much of the state budget is on autopilot, steered into education by a voter-approved ballot measure. Brown has his own feature, a rainy day fund that skims off surplus money to pay down debt and more school bills. Under his budget, the fund would grow to $8 billion, in effect another way to undercut new spending.

His chilly warnings didn’t sway his fellow Democrats in the state Capitol. “While I appreciate the governor’s continued conservative approach reflected in his budget, we must discuss the needs of Californians still impacted by the deep cuts of the recession,” said Sen. Mark Leno, the San Francisco Democrat who heads a budget-writing panel.

This jousting is sure to get less polite as fresh tax figures are totaled in May and a budget deadline looms in June. Last November, the Legislative Analyst’s Office conferred near-golden status on California finances, saying the state is “better prepared for an economic downturn than it has been at any point in decades.’’

Brown announced one significant breakthrough: a new managed health care tax that would fix a $1 billion hole. The plan reshuffles taxes on health coverage in a way that answers complaints from the Obama administration and provides breaks for insurance providers. The problem had confounded legislative negotiators for months in a special session but still needs a sign-off from Republicans wary of any tax change.

Brown’s thrifty oversight has given California’s finances new life. It’s a record that challenges his critics.